ECSU Bond Rating Upgraded by Moody’s Investors to Baa1
Significant Wealth, Liquidity and Enrollment Increases Noted
Moody’s Investors has upgraded Elizabeth City State University’s (ECSU) credit rating to Baa1 from Baa2 and issued the university a stable outlook. The upgrade scores the university lower borrower costs as a result of lower interest rates.
As noted in Moody’s report, “The upgrade of ECSU’s issuer rating to Baa1 from Baa2 is driven by ongoing strong state operating support, extraordinary state capital support, a large one-time gift that drove significant increases in wealth and liquidity and continued enrollment growth.”
“The importance of the Baa1 Moody’s credit rating signals that ECSU is and remains poised for healthy growth,” says Lisa McClinton, ECSU’s vice chancellor for Business and Finance. “The university has been deliberate and diligent in strategically working to develop and implement growth strategies, led by Chancellor Karrie G. Dixon, the ECSU Board of Trustees, and members of the Chancellor’s Executive Cabinet, alongside faculty and staff. The rating also proves that our brand is strong, and we are making effective decisions in managing and investing ECSU’s finances.”
ECSU Chancellor Karrie G. Dixon notes, “The COVID-19 pandemic has not impacted ECSU’s ability to thrive. Our focus remains on providing access and opportunities to a high-quality education for all students, many of whom hail from rural communities or are the first in their families to obtain a college degree. Most importantly, these students often graduate from ECSU incurring minimal debt.”
Moody’s noted in its analysis, “Favorably, enrollment has increased over 40% since fall 2017 driven by the university’s participation in the price-lowering NC Promise program. ECSU was also the recipient of a $15 million gift in fiscal 2021, which improved wealth and liquidity and provides increased financial flexibility.”
“Our collective ability to reach this notable milestone shows the possibilities that lie ahead as we focus on the core values in ECSU’s strategic plan, most especially accountability, excellence, and collaboration,” adds Dixon.
Moody’s Investors report is available here: https://www.moodys.com/research/Moodys-upgrades-Elizabeth-City-State-Universitys-NC-issuer-and-revenue–PR_907770092.